The US spirits industry is at a crossroads, facing a tough road ahead. According to the Wine & Spirits Wholesalers of America (WSWA), the next year will bring “significant headwinds,” continuing a challenging trend that has lingered over the past two years. This isn’t just a bump in the road—it’s a shift that’s reshaping how the industry operates, from production to sales, and everyone in the business is feeling it.
The WSWA’s latest forecast isn’t sugarcoating it. They predict that by June 2025, sales of core spirits—those outside the booming ready-to-drink (RTD) category—will drop by 5.6%. That decline reflects a return to pre-COVID consumption levels after a pandemic-driven surge that briefly boosted the industry. It’s a reality check for many, but it’s also an opportunity to assess what’s next.
What’s complicating matters is the mixed success of premiumisation. This trend, where consumers drink less but spend more on higher-quality products, has been a lifeline for some categories like vodka, American whiskey, and gin. These spirits are holding steady as consumers continue to trade up for quality. But not all categories are enjoying the same success. Tequila and Cognac, despite their popularity in recent years, are seeing revenue struggle to keep up with volume shifts. It’s a reminder that even beloved spirits aren’t immune to the pressures of changing consumer habits and rising prices.
Wine tells a similar story. Budget-friendly options like $8-$12 table wines are falling out of favor, but premium wines priced at $50 or more are showing growth. It seems that while some consumers are pulling back, others are leaning into luxury—a testament to the diverse ways people are navigating their budgets.
Economic pressures are undeniably a major player here. Rising costs, inflation, and tighter household budgets are changing how consumers approach spirits and wine purchases. According to data from the National Alcohol Beverage Control Association (NABCA), September 2024 saw declines in both volume and value across most spirits categories. This isn’t just a passing trend—it’s a reflection of broader economic challenges shaping the market.
For producers, distributors, and everyone in between, this is a critical moment. Inventory management is tighter than ever, and the stakes feel high. But there’s also hope. Many in the industry believe premiumisation still has room to grow, especially if brands can offer consumers value and experiences that justify the price tag.
The road ahead won’t be easy, but the spirits industry is no stranger to resilience. Adapting to these shifts will take creativity, innovation, and a deep understanding of what today’s consumers need. While the challenges are clear, so are the opportunities for those ready to navigate the changing landscape. Shifting trends in the US spirits industry
Commentaires